Chapter 3769-20 Relocation of Racetracts Eligible for Video Lottery

(A)
"Capital Investment" means cost
related to demolition, engineering, architecture, design, site preparation,
construction, infrastructure improvements, land acquisitions, furniture,
fixtures, equipment, insurance related to construction, capitalized interest
and other financing costs, leasehold improvements, video lottery terminal
acquisition and related technology, surveillance and security equipment, and
such other costs as approved by the director which are usual and customary for
the industry.

(B)
"Commission" and "racing
commission" mean the racing commission under Chapter 3769. of the Revised
Code.

(C)
"Director" means the director of
the state lottery commission under Chapter 3770. of the Revised
Code.

(D)
"Permit Holder" means a
corporation, trust, partnership, limited partnership, association, person or
other group of persons who or which has been granted a permit to conduct a
horse racing meeting under Chapter 3769. of the Revised Code.

(E)
"Temporary Facility" is a location
where a permit holder who conducts live racing and simulcasting according to
the requirements of Chapter 3769. of the Revised Code will simulcast racing
according to the requirements set forth in section
3769.089 of the Revised Code.
The permit holder will simulcast all horse races in this state and horse races
conducted at facilities located outside this state made available on each day
that video lottery games are operated,

(G)
"Video Lottery Game" means any game
authorized by the lottery commission that is played on a video lottery
terminal.

(H)
"Video Lottery Sales Agent" means a
permit holder that conducts live racing in accordance with Chapter 3769. of the
Revised Code, and that is licensed by the director to sell video lottery games
through video lottery terminals, and who continues to be a permit holder while
authorized by the director to conduct video lottery games.

(I)
"Video Lottery Terminal or VLT" is
a device used by a video lottery sales agent in connection with the sale of
video lottery games.

(K)
"Race Track" means any place,
track, or enclosure where a permit holder conducts live horse racing and
simulcasting for profit at a race meeting under Chapter 3769. of the Revised
Code. "Race Track" includes facilities or premises contiguous to those places,
tracks, or enclosures.

(A)
A permit holder eligible to become
a video lottery sales agent may apply in a manner as determined by the
commission to relocate its race track and all racing permits.

(B)
The application to relocate a race
track shall be made in the manner prescribed by the racing commission and may
include information required by rule
3769-2-08 or
3769-12-08 of the Administrative
Code. The application shall also:

(1)
Indicate whether or not a temporary
facility will be used to conduct business at the new location;

(2)
Identify the location for the new
track by city or township, county, address and zip code;

(3)
Disclose the incremental economic
benefits to the state in a certificate of compliance that shall be a part of
the application; and

(C)
If a permit holder's current race
track is located on property owned by a political subdivision and the
application indicates that the new location is twenty miles or less from its
current location, the racing commission shall calculate the distance and
provide its calculation to the applicant. If the permit holder's calculation
differs significantly from the racing commission's calculation of the distance,
then the racing commission's determination of the distance between the two
locations will be controlling.

(D)
An application to relocate a race
track facility must be submitted to the racing commission on or before June 11,
2014.

(1)
Seventy-five million dollars to
transfer and relocate the existing permit(s) and track located at "3664 Grant
Avenue, Grove City, Ohio" known as Beulah park to "700 North Canfield Niles
Road, Youngstown, Ohio";

(2)
Seventy-five million dollars to
transfer and relocate the existing permit(s) and track located at "5700
Telegraph Road, Toledo, Ohio" known as Raceway park to "3100 Needmore Road,
Dayton, Ohio";

(3)
Twenty-five million dollars to
transfer and relocate the existing permit(s) and track located at "21501 Emery
Road, Cleveland, Ohio" known as Thistledown to a location in the Akron/Canton
area within a twelve mile radius of the following GPS coordinates: +40° 55'
20.00 ", -81° 26' 20.00 "; and

(4)
A permit holder who makes
application for a new location and is currently on property owned by a
political subdivision and is twenty miles or less from its current location
shall not pay a fee. If the permit holder's calculation differs significantly
from the racing commission's calculation of the distance, then the racing
commission's determination of the distance between the two locations will be
controlling.

(F)
Relocation fees shall be subject to
the following conditions as applicable

(1)
Fifty per cent of the required
relocation fee shall be paid upon the commencement of video lottery terminal
sales at the new facility. The remaining fifty per cent of the required
relocation fee shall be paid no later than one hundred-eighty days following
the commencement of video lottery terminal sales at the new
facility.

(2)
All relocations fees shall be paid
to the racing commission and shall be deposited in the racetrack relocation
fund.

(A)
Capital investment plan. A master
facility plan shall be submitted for review and approval by the racing
commission and the director of the lottery. The plan shall propose capital
investments totaling a minimum of one-hundred fifty million dollars for the
racing and video lottery terminal facilities in categories as defined in
paragraph (A) of rule
3769-20-01 of the Administrative
Code.

(1)
Up to twenty-five million dollars
of the required capital investment may be allocated for existing land and
facilities.

(2)
Capital investments made in a
temporary facility that becomes part of the permanent master facility plan may
be considered for inclusion in the minimum capital investment
requirement.

(B)
Schedule. The capital investment
shall be completed within three years from issuance of a video lottery sales
agent license.

(C)
Reporting. The video lottery sales
agent shall provide status reports in a format and according to a schedule
established by the racing commission and the lottery director. The video
lottery sales agent shall maintain supporting records detailing actual
expenditures and shall make those records available for
inspection.

(D)
Facility requirements. A permit
holder who has been licensed as a video lottery sales agent shall submit a
master facility plan that shall include the following:

(1)
The facility design must comply
with applicable building and safety codes and should be accessible to
individuals with disabilities in accordance with division (B)(1) of section
3770.03 of the Revised
Code.

(2)
The facility plan shall identify
proposed improvements in the following areas, if applicable:

(h)
All other components set forth in
Chapter 3769. or 3770. of the Revised Code or any administrative rules adopted
thereunder.

(E)
Temporary facility requirements. A
permit holder may submit a proposal for review and approval of the racing
commission and the lottery director to operate at a temporary facility. The
proposal shall meet the following requirements:

(1)
The temporary facility shall comply
with the requirements for a permanent facility set forth in paragraph (D) of
this rule;

(2)
A permit holder may request a
deviation, in writing, from the facility plan requirements in paragraph (E)(1)
of this rule. No deviation may be undertaken without the express approval of
the racing commission and the lottery director; and

(3)
The minimum capital investment in a
temporary facility shall total, at least, five million dollars, exclusive of
the cost of acquisition of video lottery terminals.

(F)
Facility relocation. The permit
holder may submit an application to the racing commission outlining a proposal
for the relocation of a facility as provided in Section 3 of the Amended
Substitute House Bill 386, as enacted by the 129th General Assembly. The
application must be submitted by June 11, 2014, and shall contain a facility
plan meeting the requirements set forth in paragraph (D) or (E) of this rule
and must seek transfer of all racing permits.

(G)
Relocation costs. If the racing
commission approves a temporary facility, the permit holder shall be
responsible for all costs associated with the transition from the temporary
facility to a permanent facility including the cost of relocating the central
monitoring system and components.

(H)
A permit holder also licensed as a
video lottery sales agent shall comply with all of the facility requirements
set forth in Chapter 3770:2-12 of the Administrative Code.

(I)
Simulcasting of races shall
commence on or before the date that the temporary facility begins video lottery
sales.